{"id":382319,"date":"2010-03-02T22:42:00","date_gmt":"2010-03-03T03:42:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-2012558804095260914"},"modified":"2010-03-02T22:47:15","modified_gmt":"2010-03-03T03:47:15","slug":"forbes-buffett-is-not-god-berkshire-is-no-buy","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/382319","title":{"rendered":"FORBES: Buffett Is Not God; Berkshire Is No Buy"},"content":{"rendered":"<p><!-- AddThis Button BEGIN --><cite>David Serchuk<\/cite>, <span class=\"date\">03.02.10, 04:30 PM EST<\/span> <\/p>\n<h2 class=\"storyDek\"><font size=\"3\">He&#8217;s the best investor of the past half-century and maybe of all time, but Warren Buffett&#8217;s own company is no screaming value.<\/font><\/h2>\n<p>                                         <script type=\"text\/javascript\" src=\"http:\/\/images.forbes.com\/scripts\/jquery\/jquery.js\"><\/script>                                         <script type=\"text\/javascript\" src=\"http:\/\/images.forbes.com\/scripts\/jquery\/jquery.dimensions.js\"><\/script>                                         <script type=\"text\/javascript\" src=\"http:\/\/images.forbes.com\/scripts\/jquery\/ui.core.js\"><\/script>                                         <script type=\"text\/javascript\" src=\"http:\/\/images.forbes.com\/scripts\/jquery\/ui\/ui.tabs.js\"><\/script>                                         <script type=\"text\/javascript\" src=\"http:\/\/images.forbes.com\/scripts\/story\/behavior.js\"><\/script><script> var noad= \"true\"; <\/script> <script> var noad= \"true\";\u00a0<\/script>Retail investors of modest means have long had to sit on the sidelines when it came to <b>Berkshire Hathaway<\/b>. That&#8217;s recently changed as the common &#8220;B&#8221; shares of Warren Buffett&#8217;s firm have become affordable for investors with portfolios of all sizes. But just because you can buy Berkshire doesn&#8217;t mean you should. <\/p>\n<div id=\"storyBody\">\n<div id=\"lingo_span\" class=\"lingo_region\">\n<p>In fact a good case can be made that <span class=\"tickerlinx\"><a href=\"http:\/\/finapps.forbes.com\/finapps\/jsp\/finance\/compinfo\/CIAtAGlance.jsp?tkr=BRK\"><b>Berkshire Hathaway<\/b><\/a>&#8216;s   <\/span>  (       <a href=\"http:\/\/finapps.forbes.com\/finapps\/jsp\/finance\/compinfo\/CIAtAGlance.jsp?tkr=BRK\">BRK<\/a> &#8211;  <a href=\"http:\/\/search.forbes.com\/search\/CompanyNewsSearch?ticker=BRK\">        news     <\/a> &#8211;     <a href=\"http:\/\/people.forbes.com\/search?ticker=BRK\">        people     <\/a>) shares are overvalued&#8211;just the type of purchase Buffett would avoid. So contends Vahan Janjigian, chief investment strategist at Forbes and a noted Warren watcher, as befits the author of <a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/B002YNS1M0\"><em>Even Buffett Isn&#8217;t Perfect. <\/em><\/a> <\/p>\n<p>&#8220;In my opinion, if Buffett were completely disassociated from Berkshire, he probably would not invest in it today,&#8221; says Janjigian. &#8220;It is difficult to argue the stock is cheap.&#8221; <\/p>\n<p>Berkshire&#8217;s A shares trade at $122,800 and have a trailing price-earnings ratio of 37.3, more in line with tech stocks than insurance firms (the average P\/E for property and casualty insurers is 8.3). To be fair, Berkshire is into a lot more than insurance, as its portfolio includes trucking, railroads, candy, soft drinks and furniture, just to name a few diverse industries, but Berkshire&#8217;s rich multiple also looks rather plump in relation to the overall market; the <a style=\"border-bottom: 1px dotted; color: rgb(0, 51, 153); text-decoration: none; cursor: pointer; display: inline; font-family: Arial,Helvetica,sans-serif; font-size: 14px; font-weight: 400; font-style: normal;\" href=\"http:\/\/topics.forbes.com\/S%26P%20500\" rel=\"nofollow\">S&amp;P 500<\/a> is trading at 21.7 times trailing earnings.<\/p>\n<p class=\"textBodyBlack\"><a name=\"comments\"><span style=\"font-weight: bold;\">Share Investor Links<\/span><\/a><a name=\"comments\"><\/a><\/p>\n<p><a href=\"http:\/\/www.shareinvestorblog.com\/\">Share Investor Blog<\/a> &#8211; Stockmarket &amp; Business commentary<br \/>Discuss this topic @<a href=\"http:\/\/www.shareinvestorforum.com\/\"> Share Investor Forum<\/a> &#8211; <a href=\"http:\/\/shareinvestorforum.com\/ucp.php?mode=register&amp;sid=450a61250472e03fa25c205c9c1723f1\"><strong>Register<strong><\/strong><\/strong><\/a> free<\/p>\n<p><a href=\"http:\/\/shareinvestorforum.com\/viewtopic.php?f=36&amp;t=140&amp;p=1013#p1013\"><span style=\"font-weight: bold;\">Download the 2009 Warren Buffett Letter &amp; 2009 Annual Report to Berkshire Hathaway Shareholders<\/span><\/a><br \/><a href=\"http:\/\/shareinvestorforum.com\/viewtopic.php?f=36&amp;t=140&amp;start=15#p960\"><span><span style=\"font-weight: bold;\">Download the 1977 &#8211; 2009 Warren Buffett Letter&#8217;s to Berkshire Hathaway Shareholders<\/span><\/span><\/a><\/p>\n<p><span style=\"font-weight: bold;\">Recommended Amazon Reading<\/span><\/p>\n<p><script type=\"text\/javascript\">var addthis_pub=\"shareinvestor\";<\/script><\/p>\n<table id=\"searchResults\" cellspacing=\"0\">\n<tbody>\n<tr class=\"clsEven\">\n<td class=\"tdimage\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0553384619\"><img decoding=\"async\" src=\"http:\/\/ecx.images-amazon.com\/images\/I\/51hlhRX908L._SL75_.jpg\" alt=\"The Snowball: Warren Buffett and the Business of Life\"><\/a><\/td>\n<td class=\"tddescription\"><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/0553384619\">The Snowball: Warren Buffett and the Business of Life<\/a> by <span class=\"by\">Alice Schroeder<\/span><br \/>Buy new:        $13.60       \/ Used from:        $10.34<br \/><span class=\"availability\">Usually ships in 24 hours<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/B002YNS1M0\"><img decoding=\"async\" src=\"http:\/\/ecx.images-amazon.com\/images\/I\/51h43Bp3NIL._SL75_.jpg\" alt=\"Even Buffett Isn't Perfect: What You Can--and Can't--Learn from the World's Greatest Investor\"><\/a><br \/><a href=\"http:\/\/astore.amazon.com\/shareinvestorbookstore-20\/detail\/B002YNS1M0\">Even Buffett Isn&#8217;t Perfect: What You Can&#8211;and Can&#8217;t&#8211;Learn from the World&#8217;s Greatest Investor<\/a> by <span class=\"by\">Vahan Janjigian<\/span><br \/>     Buy new:        $4.80       \/ Used from:        $2.49<br \/><span class=\"availability\">Usually ships in 24 hourS<\/p>\n<p><\/span><br \/><iframe loading=\"lazy\" border=\"0\" marginheight=\"0\" marginwidth=\"0\" src=\"http:\/\/rcm.amazon.com\/e\/cm?t=sharinve-20&amp;o=1&amp;p=7&amp;l=ez&amp;f=ifr&amp;f=ifr\" style=\"border: medium none ;\" frameborder=\"0\" height=\"40\" scrolling=\"no\" width=\"260\"><\/iframe><script type=\"text\/javascript\">var addthis_pub=\"shareinvestor\";<\/script><script type=\"text\/javascript\">var addthis_pub=\"shareinvestor\";<\/script><br \/><script type=\"text\/javascript\">var addthis_pub=\"shareinvestor\";<\/script><script type=\"text\/javascript\">var 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Retail investors of modest means have long had to sit on the sidelines when it came to Berkshire Hathaway. That&#8217;s recently changed as the common &#8220;B&#8221; shares [&hellip;]<\/p>\n","protected":false},"author":833,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-382319","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/382319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/833"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=382319"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/382319\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=382319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=382319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=382319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}